Assessment Audit: How Artificial Intelligence Affected Audit Quality of Sustainability Report Based on Auditors Perspective
Abstract
This study aims to analyze audit assessment and the effects of artificial intelligence on the audit quality sustainability reports from the standpoint of auditors who provide audit opinions on audits that are conducted of sustainable financial reports. Certain audit tasks can now be automated by the audit profession thanks to technology. Artificial intelligence (AI) and big data analytics can be used to analyze huge data, one of the technological innovations that need more study than conventional data. The number of 85 auditors of Accountant Public Firms in Medan completed questionnaires that were used in this study to gather data. Following the collection of data from respondents, quantitative descriptive methodologies were used to analyze the data. The audit profession may improve the quality of audits by promoting the use of AI and big data analytics and by supporting auditors in developing their skills to stay current with new technologies. AI can improve audit quality, reduce costs, and eventually replace human workers. People are still required in the audit process, though, as AI cannot make decisions when it comes to providing audit opinions on financial reports. As a result, its contribution to the audit process is minimal. Therefore, it is hoped that this study will shed light on the potential applications of AI in the auditing process.
Downloads
References
Aitkazinov, A. (2024). The Role of Artificial Intelligence in Shaping the Future of Education: Opportunities and Challenges. Futurity Education, 14(15), 126–146. https://doi.org/10.57125/fed.2024.03.25.08
Al-Ateeq, B., Sawan, N., Al-Hajaya, K., Altarawneh, M., & Al-Makhadmeh, A. (2022). Big Data Analytics in Auditing and the Consequences for Audit Quality: a Study Using the Technology Acceptance Model (Tam). Corporate Governance and Organizational Behavior Review, 6(1), 64–78. https://doi.org/10.22495/cgobrv6i1p5
Chassignol, M., Khoroshavin, A., Klimova, A., & Bilyatdinova, A. (2018). Artificial Intelligence trends in education: A narrative overview. Procedia Computer Science, 136, 16–24. https://doi.org/10.1016/j.procs.2018.08.233
Cho, C. H., Laine, M., Roberts, R. W., & Rodrigue, M. (2015). Organized hypocrisy, organizational façades, and sustainability reporting. Accounting, Organizations and Society, 40, 78–94. https://doi.org/10.1016/j.aos.2014.12.003
Dando, N., & Swift, T. (2003). Transparency and Assurance: Minding the Credibility Gap. Journal of Business Ethics, 44(2–3), 195–200. https://doi.org/10.1023/A:1023351816790
Davidson, M. (2010). Social sustainability and the city. Geography Compass, 4(7), 872–880. https://doi.org/10.1111/j.1749-8198.2010.00339.x
Davis, F. D. (1989). Perceived usefulness, perceived ease of use, and user acceptance of information technology. MIS Quarterly: Management Information Systems, 13(3), 319–339. https://doi.org/10.2307/249008
Fanani, Z., Budi, V. M. F., & Utama, A. A. G. S. (2021). Specialist tenure of audit partner and audit quality. Accounting, 7(3), 573–580. https://doi.org/10.5267/j.ac.2021.1.001
Fonseca, A., McAllister, M. L., & Fitzpatrick, P. (2014). Sustainability reporting among mining corporations: A constructive critique of the GRI approach. Journal of Cleaner Production, 84(1), 70–83. https://doi.org/10.1016/j.jclepro.2012.11.050
FRC. (2020). AQR The Use of Technology in the Audit of Financial Statements March 2020.
Gentner, D., Stelzer, B., Ramosaj, B., & Brecht, L. (2018). Strategic Foresight of Future B2B Customer Opportunities through Machine Learning. Technology Innovation Management Review, 8(10), 5–17. https://doi.org/10.22215/timreview/1189
Gray, R. (2010). Is accounting for sustainability accounting for sustainability...and how would we know? An exploration of narratives of organizations and the planet. Accounting, Organizations and Society, 35(1), 47–62. https://doi.org/10.1016/j.aos.2009.04.006
Guang-huan, B. (2017). Research on the Application and Influence of Auditing Artificial Intelligence. DEStech Transactions on Social Science, Education and Human Science. 10.12783/dtssehs/eiem2017/16097.
Hahn, R., & Kühnen, M. (2013). Determinants of sustainability reporting: A review of results, trends, theory, and opportunities in an expanding field of research. Journal of Cleaner Production, 59, 5–21. https://doi.org/10.1016/j.jclepro.2013.07.005
Hamza, M., Azfar, R. W., Mazher, K. M., Sultan, B., Maqsoom, A., Khahro, S. H., & Memon, Z. A. (2023). Exploring Perceptions of the Adoption of Prefabricated Construction Technology in Pakistan Using the Technology Acceptance Model. Sustainability (Switzerland), 15(10). https://doi.org/10.3390/su15108281
Harris, S. B. (2017). Technology and the Audit of Today and Tomorrow. https://pcaobus.org/news-events/speeches/speech-detail/technology-and-the-audit-of-today-and-tomorrow_644
Janvrin, D. J., & Bierstaker, J. L. (2015). An Examination of Audit Information Technology Usage and Perceived Importance. ResearchGate, 22(1), 1–21.
Junior, R. M., Best, P. J., & Cotter, J. (2014). Sustainability Reporting and Assurance: A Historical Analysis on a World-Wide Phenomenon. Journal of Business Ethics, 120(1), 1–11. https://doi.org/10.1007/s10551-013-1637-y
King, A., & Bartels, W. (2015). Currents of change: the KPMG survey of corporate responsibility reporting. KPMG.
Kokina, J. & Davenport, T. (2017). The Emergence of Artificial Intelligence: How Automation is Changing Auditing. Journal of Emerging Technologies in Accounting. 14. 10.2308/jeta-51730.
McKenzie Stephen. (2004). Working Paper Series No 27 SOCIAL SUSTAINABILITY?: TOWARDS SOME DEFINITIONS University of South Australia. University of South Australia, 27, 1–31.
Milne, M. J., Kearins, K., & Walton, S. (2006). Creating adventures in wonderland: The journey metaphor and environmental sustainability. Organization, 13(6), 801–839. https://doi.org/10.1177/1350508406068506
Mlekus, L., Bentler, D., Paruzel, A., Kato-Beiderwieden, A. L., & Maier, G. W. (2020). How to raise technology acceptance: user experience characteristics as technology-inherent determinants. Gruppe. Interaktion. Organization. Zeitschrift Fur Angewandte Organisationspsychologie, 51(3), 273–283. https://doi.org/10.1007/s11612-020-00529-7
Moneva, J. M., Archel, P., & Correa, C. (2006). GRI and the camouflaging of corporate unsustainability. Accounting Forum, 30(2), 121–137. https://doi.org/10.1016/j.accfor.2006.02.001
Morelli, J. (2011). Environmental Sustainability: A Definition for Environmental Professionals. Journal of Environmental Sustainability, 1(1), 1–10. https://doi.org/10.14448/jes.01.0002
Munoko, I., Brown-Liburd, H. ., & Vasarhelyi, M. (2020). The Ethical Implications of Using Artificial Intelligence in Auditing. J Bus Ethics, 167, 209–234. https://link.springer.com/article/10.1007/s10551-019-04407-1#citeas
Noordin, N. A., Hussainey, K., & Hayek, A. F. (2022). The Use of Artificial Intelligence and Audit Quality: An Analysis from the Perspectives of External Auditors in the UAE. Journal of Risk and Financial Management, 15(8). https://doi.org/10.3390/jrfm15080339
Nwakaego, D. A. (2015). The Effect of Accounts Payable Ratio on the Financial Performance of Food and Beverages Manufacturing Companies in Nigeria. Quest Journals Journal of Research in Business and Management, 3(9), 2347–3002. www.questjournals.org
Olawumi, T. O., & Chan, D. W. M. (2018). A scientometric review of global research on sustainability and sustainable development. Journal of Cleaner Production, 183, 231–250. https://doi.org/10.1016/j.jclepro.2018.02.162
Perego, P., & Kolk, A. (2012). Multinationals’ Accountability on Sustainability: The Evolution of Third-party Assurance of Sustainability Reports. Journal of Business Ethics, 110(2), 173–190.
PwC, I. (2023). Trends and Directions of Indonesia’s Sustainability Report in the Future. Www.Pwc.Com.
Rasche, A., & Esser, D. E. (2006). From stakeholder management to stakeholder accountability. Journal of Business Ethics, 65(3), 251–267. https://doi.org/10.1007/s10551-005-5355-y
Rosli, K., Yeow, P., & Siew, E.-G. (2012). Factors Influencing Audit Technology Acceptance by Audit Firms: A New I-TOE Adoption Framework. Journal of Accounting and Auditing: Research & Practice, 2012, 1–11.
Sharma, A., & Kumar Panigrahi, P. (2012). A Review of Financial Accounting Fraud Detection based on Data Mining Techniques. International Journal of Computer Applications, 39(1), 37–47.
Solaimani, R., Rashed, F., Mohammed, S., & ElKelish, W. W. (2020). The impact of artificial intelligence on corporate control. Corporate Ownership and Control, 17(3), 171–178.
Stahl, G., Miska, C., Lee, H-J., & Sully de Luque, M. (2017). The upside of cultural differences: Towards a more balanced treatment of culture in cross-cultural management research. Cross Cultural & Strategic Management. 24. 10.1108/CCSM-11-2016-0191.
Stancheva, E. (2018). How Artificial Intelligence Is Challenging the Accounting Profession. Journal of International Scientific Publications Economy & Business, 12(1), 126–141.
WCED, S. W. . (1987). World commission on environment and development. Our common future.
Copyright (c) 2024 Rana Fathinah Ananda, Sari Nuzullina Rahmadhani, Aditya Amanda Pane, Naufal Helmi Wiratama
This work is licensed under a Creative Commons Attribution 4.0 International License.
Author (s) should affirm that the material has not been published previously. It has not been submitted and it is not under consideration by any other journal. At the same time author (s) need to execute a publication permission agreement to assume the responsibility of the submitted content and any omissions and errors therein. After submission of revised paper in the light of suggestions of the reviewers, the editorial team edits and formats manuscripts to bring uniformity and standardization in published material.
This work will be licensed under Creative Commons Attribution 4.0 International (CC BY 4.0) and under condition of the license, users are free to read, copy, remix, transform, redistribute, download, print, search or link to the full texts of articles and even build upon their work as long as they credit the author for the original work. Moreover, as per journal policy author (s) hold and retain copyrights without any restrictions.
